Hedge Fund Technology

How to gain competitive advantage in winning new capital

The hedge fund industry is growing. Assets inflows are on the up from various sources and none more so than from institutional investors. As they look for new sources of return and to diversify their risk exposure, the institutional investor is turning to the ever more sophisticated hedge fund market for the answers. What does this new money bring? Competition, demands for transparency and regulatory pressure. How does the hedge fund industry meet these new challenges? Can technology be the strategy? At StatPro we believe it can. Read our white paper to understand more about the issues and how technology can play a vital role in providing competitive advantage in this new era of the hedge fund.
Read the white paper to:

Learn about the top five challenges facing the industry

Read about four key catalysts of change

Find out how technology can enable competitive advantage

See how the right technology can enable cost effective compliance – learn more on our AIFMD hub page

Complete the form to download the white paper

Ian Thompson, a recognized expert in investment performance analysis shares his insights into the future of performance measurement in our blog “Leveraging technology for performance management”. Ian recently joined StatPro as Client Integration Director but we don’t want to keep him all to ourselves.

From Spotify to Amazon, and Google to Apple, we’ve all heard of the cloud – repeatedly. While adopting the cloud to deliver new features may have become the standard for many consumer-facing industries, we’ve heard time and again that the financial industry has been slow to catch up and has serious concerns regarding cloud ...

While seeking enhanced returns, hedge funds typically employ the use of derivatives across various asset classes. The ever expanding list of derivatives has always presented challenges to vendors in analytics, data-flow and support. When translated to Risk Management solutions, the key question is how to get a flexible risk and analytics framework able to cover ...

Hedge funds have never looked so good! Global hedge funds under management now stand at an all-time high of $2.66 trillion with 2013 accounting for over $360 billion in capital inflow. Institutional investors are flocking to hedge funds in ever greater numbers and increased regulations are bringing about a wave of change in the industry. ...

Whatever your feelings are on hedge funds and their practices, they’re almost certainly part of your retirement fund. More and more institutional investors are allocating assets to hedge funds as they search for returns and diversification. This is placing new pressures on the hedge fund industry as it matures and starts to accept institutional money ...

By Neil Smyth

StatPro Revolution for Hedge Funds

StatPro Revolution is a sophisticated and beautiful cloud-based portfolio analysis service. This powerful and connected platform has helped our clients increase their sales, enhance their client service, meet tough regulations and reduce costs. Our unique value proposition is that you can easily share and distribute your portfolio analysis with as many people as you want, at no extra cost.

This video is a quick demonstration of StatPro Revolution’s Risk Limits Monitoring and Commitment Leverage Monitoring module, which enables users to oversee the risk and exposure of selected portfolios. This is especially useful for the alternative investments market such as hedge funds, as they are subject to increasing regulatory compliance like AIFMD.

It’s a fair assumption to say that the proliferation of hedge fund regulation has spurred technology providers to produce newer, innovative solutions. Central to this is the growing complexity surrounding data management.

Strengthening trust is critical for the future growth of hedge funds. US hedge funds have already enhanced their transparency, controls and infrastructure, helping to win the trust of institutional investors and a change throughout the value chain is emerging. However, this evolution remains a work in progress and there is much room for improvement.

Hedge funds of all sizes, in the shadow of the market meltdown of 2008, continue to field demands from investors for more transparency and liquidity, which consequently affects funds’ operational infrastructures, overhead costs, and, to some extent, managers’ choice of investment strategy.

Even though the money is flowing in, new research commissioned by State Street among alternative fund managers, including almost 200 hedge fund managers in North America, Europe and Asia, revealed that fundraising ranks as their most urgent challenge (80%).

When the Jumpstart Our Business Startups (“JOBS”) Act removed the 80-year-old ban on general solicitation and advertising for private placement, newspapers and financial magazines were filled with stories about how hedge funds were set to enter a brave new world of marketing and advertising. Six months after the passage of the law, the brave new world is just starting to emerge.

The global hedge fund industry currently has almost $2.5 trillion in assets under management, almost 75 percent (around $1.9 trillion) of which resides in North American hedge fund firms. The hedge fund industry, muzzled by statute and constrained by regulation for more than eight decades, is about to allow the public a peek behind the curtain.

Now that hedge funds are allowed to market their businesses, many are wondering when the first hedge fund commercial will appear on television. April Rudin, a financial services marketing strategist and digital media expert, believes that hedge fund marketing is more than a 30-second spot on CNBC.

Even ardent defenders of hedge fund fee structures must acknowledge the impact a marketplace open to retail investors may have on the status quo. Is the hedge fund 2 and 20 rule going the way of the banking industry’s 3-6-3 rule?